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07-05-89 Finance Comm MinutesF1T•1ANC7/PI7ZSONT•jEL 5 P0LIC"1/ITISURFJXT: 6:1.5 All JULY 5, 1969 • The meeting was attended by Mayor Kennedy, Councilmen Atkinson (Chairman), Nystul, Saverud and Hopkins. Also attending were Bob Benson of Blue Shield and Blue Cross, Insurance Agent Ed Hall, Clerk/Treasurer Hal-ver and. Ross Plambeck. 1. Health Insurance Contract. Rob Benson presented the conTrcittee rnesnbers with copies of the letter from Blue Cross and Blue Shield (MPS) requesting a 49.9" increase in our Health Insurance Premium beginning August 1, 1969. Person e g)l.ained the reasons for the rate increase and also suggested some possible actions to reduce the increase. He said we could consider an H. M. 0. Option whercbfr employees would choose to use one of eight doctors under contract. to ;;TPS. This would reduce the office call costs of those using this option. Another area to be considered would be to increase the deductible, the amount the employee pays before insurance "kicks in". They will he implementing N ged G?re which will cut- costs a little. MPS will. require preapproval of surgery, for ex2,n- ple, and fray he able to suggest or require a less cr.T.*nsive option or procedure. 2. Agent of Pecord Proposal • Fd Hall offered to serve the city as its agent of record. This would. allow him. to try to negotiate a lower rate: increase with MPS and/or try to secure bids from other carriers. He would get claims runs and monitor our claims and meet with us at least quarterly. He would he paid a commission by the Insurance Provider and he. would not cost the city anything. Mr. Hall didn't think any other bidders would be able to offer coverage less expensively than DIPS, and we may not ce't any bids at all. He doubted we could. find coverage any better than what we have now. He didn't feel third party administrators of self insured programs would play any any part in cost control, they usually simply pay the. bills. The connittee concluded the Clerk/Treasurer and City z,ttorney should look at any possible changes in coverage or funding of the Group Health Insurance Plan. They didn't take any action on the agent of record proposal. They also requested Halver to contact the County, School District and other agencies and report anything he finds at the next ccmTd ttee meeting. 3. Ambulance Write-offs Clerk/Treasurer Halver reported the accounts to be written off- were uncollectable and consisted of Clients who were bankrupt, destitute, died with no estate or covered by Medicare/Dledicaid which only paid a. certain amount and we are. barred from collecting the difference. .. #_L 8:15 xI h7T�SJCE./PiS:SOTaTL F, POLICY/INSUPANCE JUI,Y 5, 1989 • Councilf"an I4ystul. r,, vea rEc'c.7rr',.endatlon of approval to the council, Councillian SaveraJ seconder: amo] the ration carried. 4, Primary Election. Issue The conouittee was concerned that the priazoy wouldn't serve any useful. _MLYk1e,c because it wouldn't reduce the nurrber of candidates on the 14ovember ballet. City Attorney Neier was called into the meeting alr; e:cplained that state law requires the city to hold a primary election and he wouldn't advise the council to not hold the election. He said the possible probl.erc, woulcl be if someone wanted to be a write-in candidate for the primary. Cotulcilrran Nystul moved the ccrwittee recommend to the council that a priffary election not be held, contra.o., to the legal advise of the City Attorney and the. Election Department, ;;-nd to ,;plain any risks to the council. Councilman Saveruc, seconder, and the riioti.on carried with Councilman Hopk ins abstaining. 5 Compensatory Time Policy Resolution The coreni_t:tee briefly revic;,ed the resolution and concluded they were ready to reconrnend pac;sage to i_lie council. 6. Approve C] a im , Councilj;-an Atkineorl a0journe,d the forral meeting and the cor littee reviewed the • claims.